HRM Lecture 5: Performance Management

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What is the primary purpose of developing performance standards?

To establish a system for punishment and reward
To create a framework for continuous performance discussions
To set unrealistically high targets for employees
To identify key aspects of performance that can be measured and improved (correct)

What does the 'Achievable' component of the SMART model ensure?

The target is capable of being met (correct)
The target is aligned with company objectives
The target is relevant to the employee's job description
The target is specific and measurable

What is a limitation of using a single appraisal method?

It is too expensive
It is too time-consuming
It is not suitable for all situations (correct)
It is not effective in measuring performance

What is the primary focus of the 'Timely' component of the SMART model?

Establishing a timeframe for achieving targets (A) Signup and view all the answers

What is the purpose of training managers in performance appraisal?

To enable them to accomplish what they want from a performance appraisal system (A) Signup and view all the answers

What is the 'Halo Effect' in the context of performance appraisal?

A type of rating error where the manager gives an overall positive rating (D) Signup and view all the answers

What is the primary purpose of a Performance Management System?

To ensure the organization gets the performance it needs from its employees (C) Signup and view all the answers

What is a key characteristic of Performance Standards?

They are realistic, measurable, and clearly understood (A) Signup and view all the answers

What is a common challenge in measuring performance in service businesses?

Perception of quality is subjective (D) Signup and view all the answers

What is a key difference between Performance Management and Performance Appraisal?

Performance Management is a series of activities, while Performance Appraisal is a process of determining how well employees do their jobs (B) Signup and view all the answers

What is the primary purpose of Performance Appraisals?

To assess an employee's performance and provide feedback (B) Signup and view all the answers

What is a factor that can contribute to Performance Differences in a service business?

All of the above (D) Signup and view all the answers

What is a common issue with appraisals, where managers or employees avoid discussing negative issues or biased ratings?

Fear of confrontation (A) Signup and view all the answers

What type of feedback is beneficial for employee development and is viewed as constructive?

Well-done appraisals (C) Signup and view all the answers

What is a characteristic of effective performance management?

High, average, low performers are clear (C) Signup and view all the answers

What is a challenge faced by traditional appraisal methods?

Dissatisfaction and revision (B) Signup and view all the answers

What is an example of a new method for performance appraisal?

Micro feedback (B) Signup and view all the answers

What is a benefit of effective performance management?

Higher employee motivation and satisfaction (D) Signup and view all the answers

What is the primary purpose of the Management by Objectives (MBO) method?

To identify the performance goals of an individual (B) Signup and view all the answers

What is the limitation of the Ranking method?

It does not indicate the size of differences in performance between employees (D) Signup and view all the answers

What is the advantage of the Forced Distribution method?

It helps deal with 'rater inflation' (D) Signup and view all the answers

What is the purpose of the Graphic Rating Scales method?

To evaluate employee performance on a continuum (B) Signup and view all the answers

What is the primary feature of the Behaviorally Anchored Rating Scales (BARS) method?

It describes specific examples of job behavior which are then 'anchored' or measured against a scale of performance levels (B) Signup and view all the answers

What is the purpose of the Multisource rating or 360-degree feedback?

To evaluate employee performance from multiple sources (D) Signup and view all the answers

What is the primary advantage of the Narrative Methods?

It is a flexible method of evaluation (B) Signup and view all the answers

What is the primary limitation of the Forced Distribution method?

Managers resist placing people in the lowest or highest groups (D) Signup and view all the answers

What is the primary purpose of the Critical Incident method?

To keep a written record of highly favorable and unfavorable employee actions (B) Signup and view all the answers

What is the purpose of the Checklist method?

To provide a scale for evaluating employee performance (B) Signup and view all the answers

What is the focus of a performance-focused culture?

Organizational performance (A) Signup and view all the answers

What is the purpose of performance appraisal?

To improve employee performance and organization's success (D) Signup and view all the answers

What is a key characteristic of performance appraisal?

It is a continuous process (A) Signup and view all the answers

What is the main difference between performance management and performance appraisal?

Performance management is a broader concept, while performance appraisal is a specific tool (A) Signup and view all the answers

What is an example of a category scaling method?

Graphic rating scale (D) Signup and view all the answers

Who can conduct a performance appraisal?

Multiple sources, including peers and supervisors (D) Signup and view all the answers